AIB has announced a 0.5% increase in interest rates on its standard variable mortgages.
It will bring the rate to 4% and add an estimated €60 euro a month onto a €200,000 mortgage.
This is the 2nd rate rise by AIB after the bank announced another 0.5% hike last month.
The institution has been bailed out by the State to the tune of €21.5 billion.
Mortgage holders will have their standard variable mortgage rate increased from 3.5% to 4% in November.
That is an extra €1,440 a year for the standard €200,000 mortgage.
The move will affect around 70,000 mortgage holders.
AIB Chief Executive David Duffy has said although the bank is aware of the financial impact that any increase will have on customers the decision is necessary to return AIB to a sustainable operating model.
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